Fuel Smarts

Diesel Prices Climb, Crude Prices May Stall

March 14, 2016

Source: EIA
Source: EIA

The average price of diesel fuel continued to climb last week as a rebound in the crude oil market put upward pressure on energy costs, according to the latest numbers from the Energy Department.

The price of on-highway diesel fuel rose 7.8 cents last week, increasing the price to $2.099 per gallon for the week. Despite the increases, the price is still 81.8 cents cheaper than it was a year ago.

The largest increase in prices was in the Lower Atlantic region, which saw a 9.1-cent jump for the week. The smallest change was a 5.7-cent increase in New England.

The average price of regular gasoline saw an even more significant increase last week, with prices rising by 12 cents, hitting $1.961 per gallon. The price is 49.2 cents cheaper than it was in the same week last year.

The largest increase was a 15-cent bump on the West Coast, which is also the leader in average gas prices a 2.394 per gallon. The smallest change was an 8.3-cent increase in the Rocky Mountain region.

Last week’s fuel prices coincided with a rally in crude oil prices that has occurred over the past few weeks. However, the trend reversed course today, according to a recent Wall Street Journal report. Analysts had been holding out hope that oil-producing countries would reduce or freeze output at current levels in order to curb the effect of an oil supply glut.

However, over the weekend, Iran declared that it would not participate in the production freeze, opting instead to aim for a target output of 4 million barrels a day. Not only does this potentially increase the global oil supply in a time of weaker demand, but other oil-producing countries may follow suit.

Comments

  1. 1. Gary M Shular [ March 16, 2016 @ 11:38PM ]

    It has been my experience, that in presidential election years fuel prices usually increase. Diesel is less refined than regular gasoline with fewer additives so it should be cheaper. I am so sick of the fat cats dictating our fuel prices. It has absolutely nothing to do with producers, distributors, or end sellers. It is not even geared to supply and demand. The fat cats gear it to what they say is the future supply and demand. Fuel prices take forever to fall after an ample supply is announced,but jump immediatlely when those rich few want to get richer quicker. The fuel delivered today has been in storage for litteraly weeks or months so why the quick trend upward? Over 30 cents per gallon for both diesel and regular gasoline, just rediculous for the middle and lower class which is a majority of Americans. Tax the heck out of the fat people in control and give some stability to us "lesser beings"!!!!

  2. 2. Rik [ March 17, 2016 @ 05:40AM ]

    Gary,

    Everything you say is true and has been for the last 45 years. When you have API in their corner plus every politician in Washington why would it be any different? Nothing will change.

 

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